'Dubai crisis will not hurt coastal region much'

'Dubai crisis will not hurt coastal region much'

Instability will prevail only for a short time, say financial experts

Even as speculations are rife over the impact of the crisis on the employment and the investment sectors, the experts are of the view that the situation will not last long.
“Of late Abu Dhabi has come to the rescue of Dubai. Its assurance to provide financial support to the Gulf country has given a new confidence. This development will automatically stabilise the market,” Kanara Chamber of Commerce and Industry Vice-President G G Mohandas Prabhu told Deccan Herald. However, he expected the crisis to have some impact on the construction industry here. “There will also be some pressure on people of coastal Karnataka and Kerala, who are employed in the Gulf.

However, it will not be permanent,” he added. Financial analyst Giridhar Prabhu too asserted that there would not be any major impact on the coastal economy, and termed the apprehensions temporary.

“Such developments are common in a set-up where contract system is practiced more. However, it is feared that hundreds of families of the region, who are dependent on the earnings of their bread winners in Dubai, will be in trouble for some time,” he observed.
He also said the current development has indirectly shown the world how stable India’s economy is.

“India did not suffer much when there was meltdown in the US. This is the advantage of India’s growth formula,” he added. Meanwhile, Canara Builders Association President Razak said Dubai had experienced the worst ever situation in 1990s, but it could recover from the crisis.

“There will not be any impact on the real estate and construction sector of the undivided Dakshina Kannada. Such fears are unnecessary,” he said. A Mangalorean working in Dubai told over telephone that most of the people from the Karnataka’s coastal region are in such positions that they will not lose their jobs so easily. “On the contrary, the crisis may affect major investors and unskilled workers,” he added.

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